PRESS RELEASE

Harbour Solutions Project Benefits Worth $1.4billion

Study Also Recommends Source Control

July 5, 2000, Halifax, Nova Scotia — Halifax Regional Municipality’s proposed Halifax Harbour Solutions Project can produce net benefits worth up to $1.4billion over 60 years, according to a GPI Atlantic study that considers the impacts of a cleaner harbour on tourism, property values, shellfish harvesting, labour income, taxes, environmental quality, marine ecosystem services and other factors. The study subtracted the capital and operating costs of the proposed sewage treatment plants from the projected economic benefits of a cleaner harbour, and concluded that "the ‘cost’ of the proposed sewage treatment plants is a very sound investment with a positive rate of return."

The 63-page report, released today, also found that source control (pollution prevention) is essential to restore harbour quality. Restricting the discharge of toxic and hazardous substances from the industrial, commercial and institutional (ICI) sector, as well as from domestic sources, and prohibiting discharges from boats and marine vessels, are necessary to increase and maintain the benefits of a cleaner harbour over time. Halifax Regional Municipality’s source control strategies are therefore integral to the effectiveness of the sewage treatment plan, according to GPI Atlantic, a non-profit research group that includes social and environmental benefits and costs in its accounting procedures.

The study projects a 2% to 3% annual increase in tourism revenues, worth $9 to $14million a year, as sewage discharge litter on harbour shorelines, as well as odours and floating debris diminish. Current annual tourism expenditures in HRM are $500million. The GPI estimates are based on several other case studies, including the Boston Harbour clean up after which eight miles of recreational beaches became safe for swimming, and recreational fishing in the Boston area was revived.

Aesthetic improvements in the downtown waterfront area, the re-opening of affected Halifax beaches, and projected increases in water-based tourism, including water tours and cruises, sailing, windsurfing, and canoe rentals, will all boost metro tourism. The GPI study notes that Northwest Arm beaches are currently closed periodically due to bacteriological contamination, and that windsurfing competitions in Halifax Harbour have been discontinued due to the risk of water-borne illness.

Currently 93 square kilometres is closed to shellfish harvesting in Halifax Harbour due to bacteriological contamination, resulting in $27million in lost revenues between 1965 and 2000. Based on renewed shellfish harvests after successful harbour clean ups in Rhode Island, Boston, and Washington State, the GPI study projects that up to 50% of Halifax shellfish areas could be reopened, producing up to $19million in revenues over 60 years. It is anticipated that between 50% and 70% of shellfish may remain unfit for human consumption even after the sewage treatment plants are functional, both because of remaining high coliform levels in some parts of the harbour, and due to the presence of heavy metals and chemicals not screened out in the sewage treatment process.

GPI Atlantic also examined a 14-year study that determined environmental clean-up, sewage treatment, restoration of Hamilton Harbour, and harbour-side park development increased residential property values there by 18.5% within one kilometre of the harbour. Using more conservative estimates of a 5%-10% increase in property values within a 0.8km radius of the harbour, the GPI study predicts an increase in property values of up to $233million for Halifax, the Bedford Basin and the Northwest Arm as a result of a cleaner harbour.

A recent survey that found that 73% of Metro residents rate harbour water quality as poor, with most pointing to negative impacts on tourism, fish and wildlife, and loss of recreational opportunities. That survey also found that 71% of Halifax households are willing to pay between $100 and $150 a year per household for improved harbour quality.

Currently, about 187 million litres of untreated wastewater is discharged into Halifax Harbour every day, and the municipality earned a failing grade on the Sierra Legal Defence Fund’s second annual national sewage report card.

The GPI study noted that over 200 years of untreated waste discharges had compromised the capacity of the Harbour to assimilate further wastes by depleting the biological oxygen in the water that naturally decomposes wastes. Sewage treatment and source control could gradually restore the Harbour’s own ability to remove nutrients, saving a potential $58million over 60 years in engineering costs for additional levels of sewage treatment required to remove these nutrients.

Though current attention is focused on sewage treatment, the GPI study notes that source control is also essential to prevent chemicals and toxic pollutants used in printing, photo finishing, dry-cleaning, auto body work and other industries, as well as cleansers, detergents, pesticides, auto exhaust deposits and cosmetics, from entering the harbour. The report also recommends the strengthening of the existing water conservation education and retro-fitting program to reduce high discharge levels and save future costs.

The GPI conclusions will lend support to a proposed Halifax Regional Municipality by-law that will enforce pollution prevention by setting discharge limits on 44 ICI substances, and imposing fines of up to $10,000 for violations. According to GPI report author, Sara Wilson, "source control is a vital component of any wastewater treatment plan and is far more cost effective than chemically removing pollutants at the end of the pipe. Also, because source control will make discharge effluents significantly less toxic, the sludge that settles out in the sewage treatment process could be safely composted for fertilizer and used as agricultural soil conditioner."

Aside from the $1.4billion in projected economic benefits, GPI Atlantic notes additional benefits from a cleaner harbour, including improved marine ecosystem health, avoided health costs due to water-related illness, and greater recreational opportunities for Halifax residents. The study did not attach monetary values to these benefits, but noted that the proposed sewage treatment plants are intended to eliminate current health risks, and may eventually help attract a diversity of native marine species back into the Harbour and Bedford Basin.

Funding for the GPI Halifax Harbour study was provided by Environment Canada, Halifax Regional Water Commission and Halifax Regional Municipality, with in-kind support from the NS Department of Environment and Clean Nova Scotia Foundation.